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[Doc Jon]

The New York Times' Hiroko Tabuchi recently penned a scathing article (via Games Industry International) about Sony entitled "How the Tech Parade Passed Sony By." Within, Tabuchi draws some stunning conclusions about the once megalithic Japanese electronics company.

Tabuchi cites new Sony CEO Kaz Hirai's proclamation that Sony must chart a new course, noting his quote: "I believe Sony can change." But as Tabuchi herself states, "Outside Sony -- and inside it, too -- not everyone is quite so sure. That is because Sony, which once defined Japan's technological prowess, wowed the world with the Walkman and Trinitron TV and shocked Hollywood with bold acquisitions like Columbia Pictures, is now in the fight of its life."

To be fair, Tabuchi contextualizes Sony's problems as an issue more endemic in Japanese industry as a whole, but with Sony, she states that it's the company's "astonishing lack of ideas" that's at the core of its problem, while noting that the company hasn't made any money in years due to its complete lack of a "hit product" during that time.

As a result, "Sony's market value is now one-ninth that of Samsung Electronics, and just one-thirtieth of Apple's," companies that stole Sony's thunder in the television and music industries, respectively. "One by one, every sphere where the company competed -- from hardware to software to communications to content -- was turned topsy-turvy by disruptive new technology and unforeseen rivals. And these changes only highlighted the conflicts and divisions within Sony," Tabuchi writes.

One major concentration of Sony's problems, according to Tabuchi, is its culture of "disastrous infighting" that causes parts of the gigantic company to quarrel and compete with one another. Indeed, "Sony's recent leaders have had trouble wielding authority over the sprawling company," she writes. "Sony remains dominated by proud, territorial engineers who often shun cooperation."

And even though she states unequivocally that the PlayStation brand is an area where Sony has clearly "found success," an area they will continue to aggressively pursue, she writes in an earlier part of the article that "executives complain privately of recalcitrant managers who refuse to share information or work with other divisions," further compounding the problem company-wide.

She also points out the confusing nature of Sony's electronics catalog, which totes "10 different consumer-level camcorders and almost 30 different TVs," which flabbergasts customers. "Sony makes too many models, and for none of them can say, 'This contains our best, most cutting-edge technology.' Apple, on the other hand, makes one amazing phone in just two colors and says, 'This is the best,'" Tabuchi quotes ex-Sony executive Yoshiaki Sakito as saying.

But Sea-Jin Chang, National University of Singapore's Chairman for Business Policy, put it most succinctly. "At this point, Sony just needs some strategy, any strategy, because that is better than no strategy at all."


-From ign

[Doc Jon]

I really wondered this about Vita. I wondered how a company that has a global telecommunications division could release a system that seems out of touch with the current consumer, and at a price that makes people run to the next iSomething.

[Juan Cena]

One major concentration of Sony's problems, according to Tabuchi, is its culture of "disastrous infighting" that causes parts of the gigantic company to quarrel and compete with one another. Indeed, "Sony's recent leaders have had trouble wielding authority over the sprawling company," she writes. "Sony remains dominated by proud, territorial engineers who often shun cooperation."

And even though she states unequivocally that the PlayStation brand is an area where Sony has clearly "found success," an area they will continue to aggressively pursue, she writes in an earlier part of the article that "executives complain privately of recalcitrant managers who refuse to share information or work with other divisions," further compounding the problem company-wide.

Sony sounds like a Japanese DC Comics,

[Rockman]

A part of me can't help but wonder, if Sony started to tank big time, would they have to allow their rights to spider-man revert back to Marvel studios?

[Juan Cena]

A part of me can't help but wonder, if Sony started to tank big time, would they have to allow their rights to spider-man revert back to Marvel studios?

Depends if they kept the movie studio, I guess. But I suspect Sony would be dropping the deadweight on the electronics side before it got rid of the media properties, though.

[achilles]

I really wondered this about Vita. I wondered how a company that has a global telecommunications division could release a system that seems out of touch with the current consumer, and at a price that makes people run to the next iSomething.

Seems to be a part of the natural life cycle of most huge companies. Some manage to adapt, at least to some degree, like IBM. Some, like Kodak, don't. Be interesting to see what Sony does. I do hope they manage some positive change, and start introducing cool products in the future.

Hell, in 10 or 15 years, it might be Apple's turn. Microsoft already seems in a downward spiral, and some web giants are in a death spiral because they got passed by.

[Mr. Poolman]

And even though she states unequivocally that the PlayStation brand is an area where Sony has clearly "found success,"

This is scary, as Sony's videogame division lost all the money they made with the ps2 on the first 3 years of the ps3 and its a console proudly sitting on the 3rd place (of 3) in the gaming industry

The "territorial engineers who often shun cooperation" sounds terrible, but makes sense, as even within Sony products, memory and chips aren't standards!

[DMM]

I love Sony products. They are of the utmost quality.

[holtom2000]

Sony sounds like a Japanese DC Comics,

Oh nice one... Zing

[Kolimar]

So much potential. What a waste...

[Log-Man]

I love Sony products. They are of the utmost quality.

Damn straight.

[holtom2000]

I also love my ps3 but I often look at xbox and wii and think what if

[Chris]

This is scary, as Sony's videogame division lost all the money they made with the ps2 on the first 3 years of the ps3 and its a console proudly sitting on the 3rd place (of 3) in the gaming industry

The "territorial engineers who often shun cooperation" sounds terrible, but makes sense, as even within Sony products, memory and chips aren't standards!

To be fair, the PS3 started out as a failure, yes.. but really gained ground as it went on, whereas Microsoft, at least, lost it.

Even with coming out a year later than the 360, there's only about a 2 million unit discrepancy between the two.

65.79 million units sold worldwide for 360
63.65 million units sold worldwide for PS3

The Wii is just a freak of nature, and it's like.. 30 mil ahead of both or something like that, but whatever.

[Rockman]

I would argue that there are more homes with PS3's than 360's.

The 360's failure rate at first was like 50%